"AC Milan categorically denies what was published today in the pages of the Corriere della Sera regarding its manager Massimiliano Allegri," the club said on their website (www.acmilan.com) on Saturday.
Milan-based daily Corriere della Sera said Allegri had accepted a three-year contract to move to the Italian capital after having refused a deal with Inter Milan.
Inter Milan have also denied that there has been any contact between them and Allegri regarding him taking over from under-fire Andrea Stramaccioni.
"Regarding what was reported in today's edition of the Corriere della Sera on the future of the Nerazzurri bench, FC Internazionale categorically denies that has been any contact or requests for contact with AC Milan manager Massimiliano Allegri," Inter said in a statement.
Allegri's position with Milan has never been secure despite a strong second half of the season during which they have only lost one game, to leaders Juventus, and have climbed to third in Serie A.
They are a point ahead of Fiorentina and play three of their last four games against relegation strugglers Torino, Pescara and Siena, making them favourites to take the third Champions league spot.
(For more sports news and updates, follow Ahram Online Sports on Twitter at @AO Sports and on Facebook at AhramOnlineSports)